Household deposits in Australia have mounted significantly, with an impressive increase of $110.69 billion over the past year. According to the latest data from the Australian Prudential Regulation Authority (APRA), the amount of housing finances held by banks reached a record-breaking $1.5 trillion in July 2024. It’s clear that Australians are increasingly investing in their homes and saving more than ever before!
Despite 13 rate hikes and soaring inflation, July marked a 2.1% increase in the total household deposits, i.e. an extra $30.81 billion on a month-by-month basis. This was followed by a slight dip of 0.78% in household deposits in June 2024.
Benefits of Depositing Money into Banks
With increased deposits, banks in Australia have become increasingly capable of lending money to borrowers and big firms at a predetermined interest rate. Nowadays, they profit more from the loan interest because it is far more enormous than the final amount paid to depositors at the end of the term. In other words, loan mobilization has ultimately assisted in increasing the country’s income.
Housing Loans Detailed Findings
Australia’s household deposits have increased by 7.8% compared to the last fiscal year and by $230.20 billion since the onset of rent hikes in April 2022, totaling an 18.13% increase within this period. In July, Owner-Occupied and Investor Loans increased by $6.77 billion, about 0.31%.
Wrapping it Up
Australians continue to exhibit financial resilience. July tax return refunds have contributed to an increase in deposits. Another obvious explanation behind the increase in household deposits during July is stage three tax cuts and government energy rebates. They have allowed Austrians to save surplus through housing deposits in the banks.
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